We all know travel is expensive: plane tickets, hotels, car rentals, food, activities, and more. And we want you to consider adding the cost of travel insurance to your budget. We don’t blame you for questioning it.
But the cost of having a medical emergency while in another country or province can easily dwarf your travel expenses in comparison.
Cost of Medical Care in the US
Imagine being down south and your traveling companion becomes sick during your trip. Did you know the average daily hospital cost in the United States is $2,607 USD? And an overnight hospital stay in the US averages at $11,700 USD? That’s probably not in your itinerary.
Average Costs for Common Surgeries in the US (2018):
- angioplasty: $28,200
- heart valve replacement: $170,000
- heart bypass: $123,000
- gastric bypass: $25,000
- gastric sleeve: $16,000
- spinal fusion: $110,000
- cornea: $17,500
- hip resurfacing: $28,000
- hip replacement: $40,364
- knee replacement: $35,000
And this is just medical costs.
Travel Plans Can Change
There is the cost of the medical treatments and health care, but think about the additional impact on your travel itself. All of these have a price tag:
- rebooking flights and possibly flight paths
- lengthening your hotel stay by days or weeks
- extending care for your children or pets back home
- missed income for the days you planned to be working
When you’re sick or injured, traveling by air can sometimes be out of the question or medically unfeasible. (In pandemic times, you might not even be able to board a plane if you have any symptoms of illness.)
None of these travel providers will accept responsibility for your personal health issues. Those costs are on you.
Travel Insurance Coverage
Do you think travel insurance is worth considering yet? Most Canadian insurers offer between $1M – $5M in emergency medical care and trip cancellation insurance. This will cover the cost of things such as:
- COVID-19
- Hospitalization fees
- Ambulance (Ground or Air Transportation)
- Fees for nurses, physicians and other health care professionals for emergency medical treatment
- Prescription drugs to treat medical emergencies
- Emergency air ambulance or commercial flight with a medical escort to bring you or your loved one home
- Emergency dental treatment due to an accident
- Returning your travel companions and/or family members that are covered by the same policy
Travel Insurance Coverage With Credit Cards
Many credit cards come with some form of embedded travel insurance policy. But, pay close attention to the policy wording because some are not as comprehensive as they seem. These areas are especially important:
- Is there coverage for pre-existing conditions?
- What are the dollar maximums of the benefits offered?
- How long will coverage be provided?
Bottom line: Always check the fine print on your credit cards. Their claims may seem too good to be true.
Travel Insurance Cost Factors
Many factors determine what you’ll pay for a travel insurance policy:
- How old are the people on the trip?
- How long are you traveling?
- What is the dollar value of your trip?
- Are all travelers currently healthy or do some have existing medical issues?
- Will you choose a single or multi-trip insurance plan?
The number of cost considerations is why it makes sense to talk to an expert. Comparison shopping for policies is important, but their coverage and wording is all a little different. It’s hard to know if you’re comparing apples to apples. And when you take into account the individual health status of you and those traveling with you, it can seem impossible.
Is Travel Insurance Worth It?
Should you buy travel insurance for your next trip? Well, given the number of variables we can’t tell you, “it will cost XX dollars”. However, a good rule of thumb is to estimate the cost at between 4 – 12% to the total cost of your trip.
If you’re planning to spend $12,000 for a once-in-a-lifetime experience, then adding $480 – $1,440 doesn’t seem like a lot. Especially when you compare it to the costs you’ll face if a medical emergency does happen, and you aren’t insured.
We’d love the opportunity to provide you with a quote. Get in touch with one of our advisors, we’re happy to help.
Our advisors work for you; they aren’t tied to a specific insurance company, and their services and advice are free. All MMHI advisors are certified by TRIP- a governing body for travel insurance professionals.